Removing social and economic divisions

The SDLP theme in this Assembly Election is “Uniting People, Building Prosperity”.  We have always seen the unity of people as central to our vision, and there remains important work to be done to remove social and economic divisions.  Equally at the present time of economic recession, getting our economy going again and providing jobs and hope for our young people is a vital part of what we are offering to the electorate.  I recently spearheaded our 70-page document “Partnership and Economic Recovery” which details a radical platform to make efficiency savings, redesign our public sector, raise fresh revenue and sell off carefully selected public assets which will attract private investment.  These proposals fully address the £4 billion reduction in real terms being imposed on the N. I. block and are an alternative to the recent Executive 4-year budget which largely passes on those cuts.  The SDLP measures would represent a substantial economic stimulus and a rebalancing of the economy, and would also provide resources to protect some of the most vulnerable in the community.

Furthermore the SDLP has proposed a 25 year economic and financial compact with the treasury.  This would map out the future in terms of tax-varying powers, a local social security system and the long term delivery of the block.  It would continue to apply in the event of constitutional change.

Invest Northern Ireland largely achieved its targets over the last four years.  Despite that, all experts agree that current policies appear destined to leave us sitting at 80% of average UK productivity as far ahead as can be seen.  We have work to do in developing our skills base and reducing the numbers of economically inactive.  It is not all for government to do either.  Declan Kelly, the US economic envoy, recently called on business to start taking more initiative itself.  Nonetheless, in terms of public policy, the SDLP believes that a reduction in corporation tax to the Republic of Ireland level is the single big change that can be made which will be a game changer.  There is no question that the Irish Government continues to see its low rate of corporation tax as a fundamental driver of its economy, and that is why it is resisting German and French efforts to force up the rate.  There continues to be a far greater entry of Foreign Direct Investment into Ireland than into Northern Ireland.  I recently talked to the head of an Irish recruitment agency who told me of several firms currently entering Ireland who actually cannot find the labour skills they are looking for and are prepared to recruit across Europe for posts situated in Ireland.

I believe that the negative voices on corporation tax should be resisted.  There will be a cost to the N. I. Block, but some appear willing to exaggerate the size of that and to ignore the ability to phase in the measure.  It may well be sensible to accompany a reduction in business tax with incentives for R & D and for training, but corporation tax remains the single measure of critical importance.  It is a great pity that Sammy Wilson as Finance Minister has been so cool on the proposal and that he has been allowed to drown out the previously well established position of the DUP in favour of a reduction in business tax.  Likewise there are voices like that of Lord Kilclooney who take an ultra-Unionist approach and say we should not diverge from a UK standard rate of tax.  We should ignore such voices.  For once we have a Secretary Of State who is disposed in favour of reducing Corporation tax.  This is the time to make the move.

Student fees at university are a crunch issue for many families.  The SDLP is opposed to any increase in the current level of fees.  It is clear that the British government policy to increase fees to a maximum of £9000 is in trouble.  Contrary to expectations, the vast majority of British universities are going for the £9000 figure.  As much as one third of the student loans involved are expected never to be repaid because the students involved will go abroad or never achieve the threshold salary level.

The burden of a £9000 annual fee on a student is colossal.  This is a shocking level of debt, leaving aside other elements of a student loan, to put on the shoulders of a young graduate.  So far, entry of lower socio-economic groups into university has not been reduced by the fee-charging introduced to Northern Ireland by direct rule (though of course such groups are under-represented anyway) but with a fee of £9000, there can be no confidence that this will continue, and the likelihood is that it will not.

When Sean Farren was SDLP Minister for Employment and Learning he introduced the most generous grant system for needy students anywhere in the UK and the SDLP will continue to defend the position of students and families.

Our universities must be properly funded.  There are serious questions about how that funding is used and about accountability.  But increasing fees is not the way to a sustainable financial environment for students, families and universities.

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